Signs the economy has bottomed out with few signs of inflation bode well for the more industry-intensive precious metals such as silver, platinum and palladium.
An additional longer-term positive is that at the 18th Chinese Party Congress, leaders pledged to double China’s per-capita income by 2020, indicating that pro-growth policies will continue to be pursued in an aggressive manner.
Key events to watch this week
Investors will be keeping an eye on signs of Troika’s views on Greece’s fiscal progress, progress of “fiscal cliff” negotiations, FOMC minutes and a BoE Inflation report.
The FOMC minutes will be closely viewed for the board’s interpretation of improving economic data and what milestones must be met before the Fed considers moderating it’s quantitative easing.
The BoE, which halted further purchases of assets last week and has slowly become more introspective about its forecasts, will publish it thoughts on inflation (i.e. its medium term policy target) and economic growth.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
